GT Solar lifts FY 2010/11 EPS forecast on share buyback deal
(ADPnews) - Nov 8, 2010 - US photovoltaic (PV) equipment provider GT Solar International Inc (NASDAQ:SOLR) upgraded on Monday its earnings per share (EPS) guidance for fiscal 2010/11 after it agreed to buy back 26.5 million common shares from private equity investors for USD 203 million (EUR 146m).
The company will pay GT Solar Holdings LLC, which includes all of GT Solar's private equity investors, USD 7.66 per repurchased share. The deal is seen to be completed by November 12. Via it, GT Solar will cut the amount of outstanding shares to 124 million from 151 million. As a result, the company now expects diluted EPS for the current fiscal year to reach USD 1.08-1.18, up from the USD 1.00-1.10 previously forecast. The full effect of the share buyback will be visible in the EPS result for financial year 2011/12, GT Solar said.
The share repurchase transaction will be funded with cash on hand. Still, the company has secured a credit facility of as much as USD 200 million with Credit Suisse Group AG (VTX:CSGN) in a bid to keep its financial flexibility. After the transaction in completed, the company estimates it will have more than USD 110 million in cash, cash equivalents and short-term investments.